Have you checked your auto insurance coverage lately to see what your liability coverage is?

Many people still have 1980′s coverage 

Too many people are still maintaining 100/300/50 (dollar) liability limits which were excellent levels back in the 1980’s.  To review, $100,000 is the limit per person for bodily injury coverage; $300,000 is the total amount for bodily injury coverage (for everyone); and $50,000 is the coverage for property damage.

While rental car companies consider this to be the minimum amount of coverage required, and states have even lower requirements, in today’s dollars you are taking considerable risks every time you drive.

If you were to be involved in an auto accident involving three or four cars, or if one or two individuals were seriously injured, 100/300/50 liability coverage would probably NOT be sufficient enough to cover the costs of the claims.  Which means, you would then be hit with the bills which could run into the tens or hundreds of thousands of dollars.

Medical costs have gone sky-high 

Let’s say you have an “at-fault” auto accident and someone was hurt badly enough to spend a week in the hospital, and couldn’t work for a year or two.  Loss of pay as well as hospital and medical-related expenses could easily exceed $200,000.

The insurance company would pay the $100,000 as stated in your policy.  Then YOU would be responsible for the additional $100,000.  Auto accidents like this can get very expensive and a good lawyer will look for any assets that you have that can be attached, such as your paycheck.

Upgrade coverage to today’s dollars to protect assets

We strongly recommend you consider increasing to the higher liability limits of 250/500/100 especially if you have assets that you could lose.  People need to have coverage in today’s dollars. Why take the risk and lose sleep over this?

Sufficient liability coverage is the most important thing to consider when buying or reviewing your auto insurance.  Everything else is just fluff.

Remember, it’s what’s INSIDE the auto insurance policy that counts, not just the price on the cover page.